Key Differences Between Social Security Disability and SSI

Although both programs are administered by SSA, Social Security Disability and SSI are very different. When I worked for Social Security, I noticed that many people didn't even know what type of benefits they were receiving. If you are thinking about filing for Social Security Disability or SSI, it's important to know which programs you are eligible for. This article covers the key differences between Social Security Disability and SSI benefits.

Let me start by defining each. SSI, or Supplemental Security Income, is a needs based disability program that pays monthly benefits to children and adults who are blind or disabled, and to individuals over age 65. Social Security Disability is a disability insurance program that is based on your work record and how much you've paid in via taxes. Both programs require you to file an application for disability and receive a decision.

The first difference between Social Security Disability and SSI benefits is in the requirements. In order to receive Social Security Disability, you have to have worked and paid enough in with your taxes to be "insured". A good way to know whether or not you might be insured is to determine if you've worked at least five out of the last ten years before you became disabled. On the other hand, there is no requirement of prior work for SSI. You only have to be disabled and meet the income and resource requirements as it is a needs based disability program.

Another key difference between the two disability payments is the type of insurance you may receive with them. After you are on Social Security Disability for two years, you become eligible for Medicare. This is not the case with SSI. People on SSI normally receive Medicaid.

The next difference is in payments available for your family members. If you receive Social Security Disability, your dependents may be able to receive a payment off of your record. If you've paid in enough, children under 18, adult disabled children, and even some spouses, may be able to get a check. There are absolutely no dependent payments for SSI. You only get a payment if you're the disabled person.

Another difference we'll cover is with how the payment amount is calculated. SSI payments start with a basic federal benefit rate that is the same for everyone. It is $674.00 in 2009, for example. The federal benefit rate is then reduced according to how much countable income you have. Social Security Disability payments are directly correlated to your work record. Basically, the more you've worked and paid in via taxes, the higher your amount will be.

The last difference between Social Security Disability and SSI benefits is when the payments are received. All SSI payments are received on the first of the month. Social Security payments are received on the 3rd of the month, or on the 2nd, 3rd, or 4th Wednesday of the month, depending on when your birthday is. When people used to call me at Social Security confused about their benefits, I would first always ask them when they receive their check. This is the easiest way to determine whether you get SSI or Social Security Disability.

Both SSI and Social Security Disability can be confusing, whether you're thinking of filing an application or already receive benefits. If you have questions, you can get more information from www.ssa.gov. You can also try your luck and attempt to get ahold of someone at your local Social Security office.

Sources

www.ssa.gov and personal experience